2026 economic trends: six forces reshaping portfolios

0:00If you're sitting on some cash right now or the same old stocks that you've been buying for years, what's about to happen in 2026 is going to make that worth a lot less. But if you understand what I'm about to show you, you could position yourself potentially for one of the biggest wealth transfers we've seen in modern American history. We're talking nearly $5 trillion flooding into the economy, a complete reshaping of global supply chains, AI spending hitting $2.5 trillion, defence budgets exploding to over $1 trillion, and interest rate policies that will be determined by a poodle.

0:43And all of that will determine whether your investments soar or whether your savings just evaporate. So the stakes are high. The gap between those who understand these 6 trends and those who don't, that's the gap between building generational wealth and watching inflation steal your money. My promise to you is that by the end of this video, you'll know exactly which sectors are about to explode, which investments to avoid, and how to potentially position your portfolio for what's coming.

1:14Because 2026 isn't just another year. It's the year when multiple economic forces collide in a way we have not seen since the 1980s, which were glorious because that's when I was born. My name is Felix Prehn. I'm an ex-investment banker. That's Winston back there who's done all the hard thinking around this, which is why he looks so tired. No, this is probably his hike this morning. And we are also the founders of Goat Academy. We have taught over 20,000 students.

1:39I'm also the co-founder of Trade Vision where we give retail investors the same level of market intelligence that used to be reserved just for institutions. So our mission is simple. Teach regular investors like you to see around the corners, understand the game before it's played and make decisions based on what's actually happening, not what the headlines want you to believe.

2:00So what I'm going to show you today is not speculation. It is based on signed legislation, federal budgets, and policies already in motion. And I'm going to walk you through 6 trends here for 2026 that are happening whether you're ready or not. So this video, this training will make sure you're ready. And here's what no one's going to tell you on CNBC or mainstream media. The system is designed to move wealth from people who don't understand these trends to people who do. That's the goal. So let's make sure that you're on the right side of that equation.

2:35So let's start off with trend number 1. You might want to take notes. There will be a workbook that you can download in the community. There's a link to it down below if you want to find it, but you might want to take notes because this is going to be pretty information dense. So what's trend number 1? This is the $4.7 trillion flood. This is the money printing on steroids.

2:53Now, the official story is that the One Big Beautiful Bill is tax relief for hardworking Americans. And you deserve tax relief if you're a hardworking American. I think everybody deserves tax relief actually. But the reality check is, and I need you to understand this because most people have absolutely no clue what's coming next. In the next 9 months, $4.7 trillion is going to flood the US economy. $4.7 trillion in 9 months.

3:22Let me put that into perspective. That is 3 times larger than the 2008 bank bailout, which bailed some of my good friends out. They were very grateful. Actually, one of my mentors is an ex-Stearns guy, which is just kind of funny. A bank that went down. This is 20% of the entire US economy hitting the market in 9 months and it comes in 3 waves.

3:48Wave 1, and understanding the timing is amazing. This is tax refunds. $1.2 trillion in tax refunds and that starts pretty much now because they've moved the tax refund deadline forward. So in February, the earliest tax refund season in American history, by the way, the average American household is going to receive $85,000. Now, of course, this isn't evenly spread. Some people get a lot more, some people get a lot less. Welcome to the world.

4:14And the government will tell you it's because we're so generous. Now, the actual reason is that the tax cuts were applied retroactively for 2025, but the IRS didn't adjust their withholding tax tables. So everybody overpaid. So congratulations. You gave the government an interest free loan and now you're going to get your own money back and you're going to say thank you to them, aren't you? Now the market went up 17% last year. They should really give you an extra 17%, shouldn't they? If they invested your money, but of course they haven't done that.

4:46Now, why is any of this important? Because when you give people tax refunds, all the science out there shows us this. 35% goes to debt repayments. Good. Good stuff, guys. Pay off those credit card bills and your consumer debt. 25%, you're just going shopping for stuff you didn't need. And 20% goes into savings and investments. Now, it's the investments part that I'm particularly excited about. And honestly, if I were you, I would put the whole thing into debt repayments and into investments because that's actually going to make your life way way way better. But you deserve the vacation. I get it.

5:22But what's the second part? Wave numero 2. That's the really big money because the bill includes a one-time repatriation holiday. And again, that's not a vacation for dead bodies returning from abroad. That would be gruesome, wouldn't it? It's a very gruesome video today. It allows corporations to bring back overseas cash into the United States and pay a reduced tax. We're talking $2.1 trillion. Apple, Microsoft, Google, the pharma companies have been hiding this money. I mean, strategically positioning it overseas and they leave that money in places like Ireland to avoid US taxes. That was a terrible Irish accent, wasn't it? I actually have a very big Irish team. They're going to come and find me now.

6:13Now, what are these companies going to do with that money? Well, to start with, it is absurd that you can be Apple, an American incorporated business, and you can hide your money in Ireland and not pay tax on it. Just an opinion. You might as well just lower the tax rates and they'll actually bring it back all the time. But anyway, they're going to do it in one go, one time. And apparently they're going to invest this money in America.

6:35Now, here's what they're actually going to do with the money because there's always the official narrative and then there's the reality, right? We've looked at all the previous repatriation holidays because this has happened before. And what do they do with the money? Well, they give 70% of it to investors, right? Invest in America. No, we're just going to pay it ourselves. And of course, all the guys running these companies are significant shareholders of those businesses and the share price goes up and they have stock options and that's good for America.

7:0310% of the money actually gets invested. This time isn't going to be any different if you ask me. But then maybe I'm a cynic, right? And if you're wondering what happens to the other 20%, that goes to M&A, which is a welfare fund for the underpaid investment banker on Wall Street because they need a certain number of deals so they can pay themselves a 7 figure or 8 figure bonus so they can buy more Ferraris, pay for the house in Nantucket and in the Bahamas, and 2 mistresses are expensive. That's the welfare fund part here. So they're going to do well and of course we all are very happy for them.

7:46All right, getting more serious. What is wave number 3? It is $1.4 trillion. Seems like a small number now, doesn't it? It is the third wave. It comes from businesses being able to write off the cost of investments now rather than over years. So maybe you own a small business or something. So say you buy a car and that car normally gets written off say over 10 years. So the value decreases and every time it decreases you can pay a little bit less tax. Here what they're going to do is there's going to be one great big beautiful write off.

8:19So who benefits from that? Well, who spends a lot of money on equipment? We're going to put some of these names into the workbook, but you might want to write some of these down. Caterpillar, Deere & Co, industrial companies, construction companies, infrastructure companies, and the big tech guys buying all that AI infrastructure. Nvidia, the guys paying for it, the Microsofts, the Googles, the Amazons.

8:45Now, this all sounds good, right? Loads of money hitting the market. There is, of course, a truth here. And when we put our economic analyst hats on and ask the obvious question that nobody actually wants to answer in Washington, where is this $4.7 trillion coming from again? Well, it's being borrowed. And when the government borrows money, it doesn't have the money. It borrows it and pays for it. Not the corporations getting the tax breaks, not the billionaires moving their money back from Ireland, not the people receiving the massive dividends and buybacks. No, you do.

9:23How? Inflation. The government calls it economic stimulus. The translation is we're going to print money, hand it to ourselves and our pals, and you, my friend, are going to pay for it through higher prices on everything you buy. But, and this is crucial, if you understand the game you can position yourself to benefit rather than get fleeced. Right? So there are investment implications from this. I'm going to run you through those. We look at a couple.

9:49Off the charts, maybe even god forbid. I look at it in a timeline here right now. There is a truth to timelines, but they shift and they shift on the basis of where the big money flows. The whole investment thesis that I was taught in banking was it's about where the big money flows. We don't make the market, the big money does. So let's follow that.

10:13So if you want to get more out of this than just this rather in-depth video, come and join me on Saturday where I'm running a live training and I'm going to walk you through literally how the big money moves and how we can see it at the right time so we make better decisions. There's a link down below, Felix Prehn Trading. It's going to be an hour and a half, maybe around 2 hours if you guys want to ask me lots of questions. I'll actually break that down for you.

10:40But as I'm standing right now, where the money is sitting, this is the order I'm seeing it in. We've got small caps, IWM would be the ticker symbol for now. We got consumer discretionaries. We can pick individual stocks, we can again go for ETFs. We're also looking at home builders, we're looking at retail.

10:56Some of those themes are not entirely new because we've been in those for a while. But if you look at something like IWM and say you understood a little bit about charts and resistance and money flows, you had tops here, you had a top there. We've broken through that top. We're looking very bullish. Some institutional resistance sitting up there. I don't want to get too technical here, but those are the kind of institutional indicators that we look at and you can look at those inside Trade Vision, which is the app that we build. So this looks actually pretty exciting from my point of view, and there are a bunch of others that we can look at together on Saturday if you want to join me for that bit more detail.

11:45Now, as we move through into the middle of the year, the investment plays change in my humble opinion. Yes, the mega cap stocks are going to benefit, right? It's the immediate write-offs, it's bringing money back and therefore paying for buying their own stocks with buybacks which is going to pump their own stocks. So looking at the Apples, the Microsofts, the Googles, they're going to benefit from that. So this is the whole bringing money back to good old USA season.

12:13We also have the dividend aristocrats. Companies with consistent high dividends benefiting from this. We have the investment banks. Why? Because some of that money that's going to come back home is going to flow to our friends the investment bankers through M&A, mergers and acquisitions. You swap one of the M&A bankers because they're particularly full of themselves. XLF would be an ETF to run that with. We can also look at some individual stocks, which is what we're doing. We can also do that more on Saturday if you want to join me there. Link again down below.

12:53Now, as we move into the later part, the latter part of 2026, I would expect the actual investments to flow in. So some of that money, the 10% that's actually being invested, that is going to flow into capital intensive industries. Think industrials, XLI would be an ETF. Think materials, copper, steel, aluminium companies, infrastructure stocks. Those are the kind of, we're going to look at some more individual stocks in a second, but that's kind of where I'm starting off with this thesis.

13:29But bear in mind this money injection is going to cause inflation and the government will say no it won't. The Fed will say it won't. They told you the same lie during COVID when they said, we printed, how much money did they print during COVID give or take? It was about $4.7 trillion give or take. That caused massive inflation. We got officially 9.1% inflation. Now if that's officially, you know that in reality it was probably a heck of a lot more because governments lie. I'm sorry, strategically seasonally adjust the base so that the numbers look better. Something like that.

14:13So when you print money like that, 20% of all the money out there in 9 months, prices go up. It's just true, it's just maths. So how do we protect ourselves from that? Well, in my opinion, gold, still a very good inflation hedge. Silver tends to outperform in inflationary periods. Now it's already massively outperformed, so you want to be a little careful with that, but I'm still loving it. Bitcoin, yeah, if you like that sort of thing and you like volatility, and I think the whole thing is owned by certain 3 letters. We can't get into that. We're trying to make sure this video stays live. So let's be, you can read between the lines, you know what I'm saying.

15:00Real estate. So real assets, stuff that you can actually touch and feel and taste and lick and chew. He likes to chew things. Assets or real estate, commodities. And because you might be thinking that's all a bit difficult Felix, I don't really know about gold and silver, where do I buy it and so on.

15:18Well, before we dive into the next track, you want to understand not just what to buy but when to buy it and how much to allocate and most importantly learn the system that Wall Street actually uses. Well, I'm going to give you a free masterclass that walks you through exactly how the big players pick the sectors and the stocks and manage their risk and actually keep their profits instead of giving it all back to the lovelies on Wall Street. So come and join me on Saturday, felix.org/training. Literally if you just take away a little bit about risk management or position sizing or any of those things, that would be worth 10 times more than any stock tip that I could ever give you. So links down below, you know what to do.

16:02But let's keep moving because we still got a lot to cover. They're giving away so much money, this is going to be a long one. Now, trend number 2, tax cuts. The one big beautiful bill isn't just about flooding money into the economy. It's also about changing the tax code in ways that will affect every single American and even us foreigners because we invest in beautiful stock exchanges.

16:27So what are the changes? Well, there are some permanent changes and of course nothing is really permanent because governments come and go, but the income tax rate is essentially now permanently low. These are the 2017 Trump tax cuts. So we're looking at 10% to 37% and they're going to keep adjusting them for inflation. Well, official inflation, not the real inflation.

16:49And then there are some temporary goodies in there. This is the part where the government pretends, I mean sorry, cares about the working people. For 4 years there will be no tax on tips. I'm a foreigner, I struggle with your tip culture in the US. I like tipping people, but the whole percentage calculation and it being more than the meal, it's weird. I think it's weird. But anyway, if you are a worker who receives tips, you can now deduct $25,000 in tips per year.

17:24But of course there's a but. It phases out if you make over $150,000 if you're single or $300,000 if you're married. Now the official narrative is we're helping service workers. The reality is it benefits restaurant owners more than the workers because now they have an even better argument for why tips should make up the majority of compensation and they should really not pay you any salary whatsoever.

17:47There's also no tax on overtime. So you can deduct the extra portion of overtime. Now there's a limit to that, it's $125,000 per person. Officially they are rewarding hard work. The reality is it creates an incentive structure where companies would rather have you work 60 hours or 80 hours than hire another person. Hey, at least you get a tax break on your burnout, right? So it's the burnout tax break.

18:15Now for the seniors out there, if you're a senior put an S in the chat. If you're 65 years or older, you get an additional deduction of $6,000 per person. Phases out above $75,000, but again it's a nice one. We also have a car loan interest deduction. You can deduct up to $10,000 in interest on loans for new vehicles that are assembled in the United States. So I think foreign makers can still make most of the components, but it's got to be assembled by the American worker.

18:46So the government is now essentially subsidising car loans. Now that definitely won't create any weird incentives or cause auto loan debt to balloon. Definitely not. This is a good and rational decision.

19:02Now what about the big one? Well, the big one is for wealthy people. There is an estate tax exclusion, death duties, $15 million per person. That's pretty freaking generous, I must say. I've never really seen any country in the world that has something that generous. It's $30 million if you're married. So if you're a billionaire it doesn't really matter, but if you've got $30 million and you're not married, you better get married. So if you think this is great and it affects you, congratulations, you're in the top 0.1%. Now the rest of the world is going to subsidise that estate planning but.

19:41SALT caps have also increased and essentially this is a tax cut for wealthy people in high tax states like California, New York, New Jersey. Because if there's one group that desperately needed a tax break, it's people making half a million dollars a year, right? That's important and I think we all stand with those. Take it from the nurses, give it to those who make at least half a million a year, I say.

20:07Now, while the government's handing these out, this is not a political statement. I'm just kidding really with you. I'm not a fan of tax. I think tax should be generally lower for everybody. But maybe we'll get there.

20:20So what are they cutting? Medicaid, SNAP food assistance. They're phasing out the clean tax energy credits, which were always bollocks because clean and energy just doesn't go together. And they're also phasing out income-driven student loan repayments. So basically making forgiven student loan debt taxable. Okay, let's make student loan debt taxable.

20:43So basically what happens? You're rich, you get tax cuts. If you're poor, your food assistance and healthcare struggles a little bit. If you're in the middle class, well, you can get that beautiful tag car loan now, right? And you're going to get some few minor tax breaks. And so the system is working as it's intended, they say, some cynicism.

21:05So the winners, of course it is the working American. We must not deviate from official government policy. But no, it's the auto lenders and the car companies, luxury goods, estate planning, which is financial services. Woohoo. I've got some friends in financial services. The losers, solar companies, EV companies. Well, EV companies, yes and no, because the auto lending will actually help them quite significantly.

21:29A big beneficiary of this is Tesla. Why? Because Tesla is the only EV company that actually makes profitable EVs. So if you take away the subsidies for everybody else, you basically make Tesla the monopoly for EVs. So that's good for Tesla shareholders.

21:47Now, let's move on to trend number 3. He's still with me for trend number 3, 4, 5 and 6. And we're going to try and speed this up a little bit. We're moving to something that most people are not paying attention to, but absolutely should. Critical minerals and rare earth elements.

22:03Now, the official narrative is this. El Presidente Trump issued a proclamation citing national security concerns about America's dependence on foreign buggers who make all the critical minerals. Now the reality is and why it matters for your money. The United States is 100% net importer for 12 critical minerals and more than 50% reliant for 29 others.

22:31So even if the US can mine these minerals domestically, the US does not have processing capacity. So you dig it up, you got to ship it to China, they're going to refine it, and you got to ship it back, which is interesting. So the US literally sends raw materials to its biggest geopolitical rival of the moment and then it buys them back at a markup, which is dependency.

22:57So what are we talking about with this whole thing? Well, you need rare earths for everything from fighter jets to smartphones. You need them for batteries, lithium, robots. You need all the stuff for semiconductors, for military optics, for infrared technology, and basically China controls pretty much the whole thing. At least the processing, they control pretty much all of it.

23:23So if you want to make electric motors, and everything electric has an electric motor in it, wind turbines, military equipment, well, you're going to have to be nice to China, otherwise you can't make it. So Trump's therefore said, we're not going to put tariffs on those things as that would be silly, you would just pay more for it. We're going to secure the supply chain. So the goal is to secure domestic processing and diversify away from foreign suppliers.

23:50Now, this is a 10-year project. This is not going to happen overnight because mining and processing facilities and so on take a long time to build and it requires a lot of money, environmental approval, technical expertise and development and so on.

24:08So where this gets interesting is that the defence department is really stepping up and understanding its supply chain, which they've never done before. So for us as investors, the government has announced $1 billion in critical mineral funding, $135 million specifically for rare earth processing.

24:27So who benefits from this? Well, let me give you some names. You've got LightPath Technologies. The ticker symbol there is LPTH. You got MP Materials, ticker symbol is MP, and then a bunch of other domestic manufacturing companies.

24:42Now LPTH, just a word on that. This is not a stock tip video obviously, but they make optical components. They're now one of the very few American companies that can provide germanium, which is now banned from being sourced from countries like China and Russia for military applications. They have a guaranteed customer, the US military, which has unlimited funding as they can just print money.

25:04There are also some others. There's UCORE Rare Metals for example, they focus on establishing a US-based rare earth processing infrastructure. As I say, MP Materials is here. But you could also just go into construction engineering firms. There's a bunch of that.

25:23So essentially the take there is the government is guaranteeing the price points. LPTH for example, a very nice run up, very nice breakout here, about $10. Is it too late? We'll talk about it on Saturday. MP Materials has actually done nothing since July of last year, which is an opportunity I think potentially if you know how to get yourself into it at the right time. So again join me for that on Saturday.

25:50But let's move swiftly on and try to be a little bit less cynical. The elephant in the room, not the golden retriever, that would be rude. This is a $2.5 trillion elephant. So worldwide AI spending is expected to hit $2.5 trillion just this year. 44% more money than last year to be spent.

26:12Who's spending that? Google, Meta, Microsoft, Amazon, most of it. Well, $500 to $700 billion on infrastructure. Now, AI is going to revolutionise everything. We're told it's going to increase productivity, solve all of our problems, and it's going to create amazing new opportunities. And there's some truth to that, by the way.

26:30But there is also reality. It's going to displace millions of people in their jobs, which is just true, right? Literally 35% of large US companies are adopting AI workforces. 20% plan to slow hiring or cut the workforce. And the people who really really care about you, the World Economic Forum, for those lovely people, they have your best interest at heart. Absolutely. They say it's going to displace 8% of current jobs. Doesn't sound like a lot, but that's obviously millions and millions of people. And I think that's true. Just like every other technological shift has done that.

27:06Now, you won't be replaced by AI directly. You're going to be replaced by somebody who knows how to use AI better than you do. So that's an important lesson there I think. So where's the money going to go and how can we benefit from this shift?

27:20Well, AI chips are going to get a lot of money including a 28% uplift. So think Nvidia. AI servers, interesting. Data centres, that's a lot of money, $580 billion. We have also the software guys and people often don't talk about that. AI software, that's a 4x from last year, $230 billion. So there is definitely something we might want to look into there, right?

27:47And there is a shift here. You can't just buy the same things you're buying a year or two ago because we have a shift to AI inference. What does that mean? What does inference even, who comes up with these words? It means running AI models that are actually in production. That is going to exceed the spending on training AI models, which is where we're coming from. So all the money went into training and teaching AI models and I hope they're going to continue because AI asked me yesterday, can you please confirm what day it is because I'm getting confusing and conflicting dates. And I was like, surely there was a source of truth for what day of the week it is, surely. But it's really struggling with that.

28:26So what does it all mean? A lot of companies are done experimenting. They're deploying AI at scale. So what are the obvious plays here? Well, Nvidia, AI chip king. Nobody else has come close. Palantir, the integration layer.

28:43AI, I use AI a lot for all my businesses and everything. And it does a lot of stuff amazingly well. And then occasionally comes back and says, today is Tuesday. And I'm like, today is Wednesday. And then it'll say, as I'm recording this, I think it's actually Thursday, but it doesn't really matter. And then it says, no, you're not right. And then it'll count back days and it'll skip a Tuesday somewhere and I'm just thinking, oh my god, you're going to run the world.

29:07Anyway, Palantir actually makes AI work. So if you run a regulated business like insurance or banking or you're a government or military where decisions kind of matter, right? Do we kill them or do we not? You're going to use Palantir. They're also explicitly named in the border security initiatives. They're going to get a lot of money for that kind of stuff. It's a huge company now, $450 billion. So it's something to think about there. But if I look again at the chart, and we're going to dive into that in a lot more detail on Saturday, you see an interesting line.

29:36Here, right? You see that red line there? That's our institutional resistance. And what are you seeing or we're struggling to break through that line. So again, understanding institutional money flows is always very important. This is actually a beautiful setup in my opinion. Not quite right yet to buy, but about to be.

29:53Again, I'll walk you through the details there, otherwise this video will never end. Like Felix, make it stop. Make it stop, Winston. Make them stop. Chew the wires. It looks a bit too sleepy, doesn't it? Microsoft, Google, Meta, Amazon. They are going to benefit from this because they are actually going to monetise the benefits of AI faster than everybody else.

30:14Can we go to some others? Yeah, you got the picks and the shovels. You got the semiconductor foundries. Think things like GFSI. They make the actual chips. $800 million market cap. Pretty small play but could be an interesting one if onshoring continues. Cooling and power infrastructure, data centre energy, that's definitely something that's going to continue to benefit because energy is what they all need.

30:43Now I'm not an AI cynic. I think it's actually amazing, but a lot of people are going to be AI victims right now. As an investor you want to be on the side building and deploying the tools, not on the side being replaced on them. So as we have 35% of companies that are using AI, we have 65% of companies that are not. So we're just in the first inning of a multi-decade shift in spending.

31:09And the companies and investors who recognise this early, they're going to build some serious generational wealth potentially. The ones who ignore it, well, they're probably going to get left behind. So you want to be in that space. You want to understand the money flows, the sectors, the individual companies. And I'm going to give you all the rules for that on SAT.

31:26Now, number 5. This is one of my favourite topics. Not because I love war, I don't. But because when it comes to government spending, defence contractors have the ultimate guaranteed customer. Trump has proposed a defence spending of $1.5 trillion. Now, the Congress has approved $900 billion of that for this year. So we're going to have to get uplift this year. And then for 2027, a 50% increase.

31:56Why? Well, apparently Homeland Security and protecting America and that sort of thing. And again, I don't want to get political about this. I was making the same jokes about Biden and people were always saying, "Oh, you love Trump." I make the same jokes about Trump and people say, "Oh, you love Kamala." Or that Californian governor, Newsom, who seems to be doing a particularly horrid job if you ask me.

32:22But again, it's not meant to be political, I get a saying. Your politics is up to you guys, right? I'm not American. I just see it from the outside. I look at what they're doing, what they're saying, and then I look at how can I make the most money out of this. Pure cynicism over here. The good thing with that is that you don't get disappointed because you have no expectations of politicians.

32:39Anyway, where does the money go? Well, missile defence is going to get a lot of money. The Golden Dome of America, basically an Israeli type missile shield. So who's going to make it? Well, RTX is the obvious winner. They make the Patriot missile system. So they already have guaranteed spending through 2032 for that, 7 years of locked in revenue. What business has that guaranteed revenue?

33:05There are also some others. There is Park Aerospace, PKE. There is MOG, which is called Moog. These are sole source suppliers of components for the Patriot missiles. Sole source suppliers means you're a monopoly. Your customer is the government, right? So it's kind of an interesting business to be in, something worth looking at, I'd say.

33:27And then for the whole drone thing. The military is moving from these specialised drones to literally giving every soldier and infantry squad their own drones, which makes sense because otherwise they're all going to die. So who we got? AeroVironment, ticker symbol there is AVAV. They make military drones. It's only about a $1 billion company if I'm correct on that. They're going to win some major army contracts I believe in the coming quarter.

33:53You have Anduril, be great but they're not public listed yet. You have Drone Aviation, ticker symbol is DRNE. It's a counter drone system. They also benefit from the Safer Skies Act which gives local law enforcement some counter drone powers. They can pop them out of the sky as they should.

34:16Well, Palantir, because I think they're going to run the whole thing. They're going to tie it all together, otherwise it doesn't work. And then you have Space Force that's going to get 30% uplift in spending. Rocket Lab is in there. They build satellites, rapid launch and so on. $800 million contract from Space Development Agency.

34:36You have LASR. They make high power fibre lasers that can power energy weapons. So a laser can shoot down a drone for a dollar versus sending a $500,000 missile to take one out. Small company at $2 billion market cap. LASR is the ticker symbol. I'll put it on the screen for you here.

35:03So that's maybe one to have a look at. There is a little bit of a warning here though. Trump has threatened defence contractors. They pay out dividends or buybacks, they're not going to get contracts. So that's not quite as investor friendly as we would like. I've talked in the past about a Korean defence industry index.

35:25And by the way, with Palantir, I mean, look at our channel. We started talking about that in February 2021. It was at $29. Doesn't mean we're right on everything, by the way. But yeah, KDEF, we talked about that a little while ago. Go back in my videos. Now it's obviously been a very nice run up for anybody who caught that, up 20 odd per cent or so, which is good.

35:43So again, we follow institutional money. We're not claiming to be smarter than anybody else. We just look at what's the data, what's the big money doing. That's really literally what it's all about. So that's laser weapons. So if you want to be conservative about this, RTX, Lockheed Martin are probably your considered safer place for growth. Palantir, Rocket Lab, they're going to be more volatile. If you want to be more adventurous then AeroVironment and so on.

36:09Again, it's not a get rich by Friday place. This is a multi-year trend, but it's also one of the few areas where the government will never cut spending significantly because politicians love being able to say I support our troops. And defence contractors spread the manufacturing across every congressional district in America. So it's the most bulletproof government spending there is. Basically bulletproof, maybe not the greatest phrase there.

36:32And then number 6, and this is the poodle plan. What does the poodle plan entail? So you have a president. That's a thick pen, isn't it? You have a president. And he wants to win the midterms and he wants to be popular and he wants to have the most beautiful economy in the world. And I hope you get it. So what does he do?

36:51Well, he has the power to appoint the Fed poodle. Sorry, chair, but you know what I mean now. Now he appointed the last Fed poodle who became independent to run the thing. Chair Powell, he's a Trump appointee. He's a card carrying Republican. People often don't realise that.

37:12And now weirdly 8 years later the same president weirdly gets to appoint the next Fed chair, sorry poodle, or the other way around, except this time he's going to pick one who's actually going to be a well-trained obedient golden retriever. So therefore he is going to cut interest rates because he's going to get appointed to cut interest rates and he will have sworn allegiance to his lord and master to cut interest rates.

37:37Now the market expects one cut this year. Sorry, the Fed expects one cut this year. The market expects two cuts this year. I think if we have Trump to entertain us, we're going to get the biggest and most beautiful Fed rate cuts in history. And therefore I think we're going to get 3 or 4 or more cuts second half of this year and then going into the year after.

38:02Why? Well, very simple. Debt becomes a lot easier to pay if your interest rates are lower and the economy gets pumped because investment is cheaper, your car loans are cheaper, everything is just cheaper, everybody feels like they have more money.

38:19In reality, yes, there is a risk we're going to get some serious inflation. I think that's not just a risk. I think that's actually a given. So what happens if interest rates fall? Well, go back to the post-COVID era. Growth stocks moon. Real estate moons, REITs moon. Anything with risk and growth in it goes to the freaking moon and the world is wonderful and everybody's an investment genius until rates go up again when people realise whoops I didn't have any risk management.

38:51So what are the safest bets? Growth and value, real estate, companies with pricing power. So think your Microsofts, your Googles, your Amazons, they have pricing power. And then if we put it all together, we get as a little reminder here, $4.7 trillion hitting the economy, massive tax cuts, critical mineral subsidies, massive AI spending, huge defence spending, rate cuts, and what does this

39:20What does it mean? Well, it means you're going to get inflation and that tends to take quite a few years. It means that the salary man is going to feel the pinch. The investor man is going to celebrate.

39:33So my advice to you would be take as much of your salary as possible and put it into the freaking market in a responsible way with some good risk management. Obviously get yourself some advice and so on because asset prices will rise. That's my opinion. Stocks, real estate, gold, Bitcoin, I think everything is going to go up. Cash is going to lose massive amounts of value because they're printing more dollars and the dollars are going to be used to buy these assets. Very simple.

39:58So who wins? People who own stocks, people who own real estate, people who understand what's happening. That's you now because you made it this far. Congratulations.

40:05Who loses? Cash. If you have fixed income investments and if you don't know what the heck's going on here. So strategy, minimise cash holdings, own real assets and focus on companies with pricing power. Diversify, understand risk management. Position sizing is way more important than some religious affinity. Is that a word? For a stock, don't fall in love with a stock.

40:37And watch the sector rotation. Money flows in fairly predictable patterns. And what does that mean? Well, money will be in one sector and then it'll go into the next sector and then it'll go into the next sector because Wall Street always chases money. And as it does that, it leaves great big paw prints in the sands of time and we can watch those and I believe we can use them to make better informed decisions.

41:01So we run through that the mega caps, the dividend stocks, the financials, industrial materials, the defence stocks and maybe this is just a lot of stuff for you to absorb. I think it was a lot, wasn't it, Winston? It was a lot. So come and learn the structure, the system that you can apply to absolutely anything, whether you're buying gold and silver or stocks or real estate or anything on Saturday, felix.org/training.

41:23I give you some real education. If you want to then take it any further and actually learn from real world street mentors, which is how I learned, I'll also break that down for you in a couple of minutes and take your questions and we're going to have some fun with them. Winston and I say thank you very much for watching. Don't we, Winston? Winston. Hey. Hey, what do you think?

41:46Not that enthusiastic. That's what happens when you hike every morning and get chewed by a bunch of wild golden retrievers. So, 2026 will be one of the most interesting years. I think it'll be one of the most entertaining years for those who are on the right side of the whole thing. Massive trends converging. We've never seen anything like it. I certainly have never seen anything like it. Never seen a government like this, which will be interesting.

42:09And the gaps between the wealthy and the not so wealthy will get bigger and bigger and bigger and you just got to decide which side of that you want to be on. The system is designed to transfer wealth. That is the purpose. It's not a flaw. It is the intention. So you can riot about it but it doesn't really achieve very much. Just participate in it and then you have more money, more freedom, more power.

42:33You can then do something with that and you can do some good if that's what you want to be doing with your time, which I think is a great thing to do. We said 2026 is already decided. I believe it is. Come and learn with us, felix.org/training. And if you got some value out of this video, then I'd ask that you share it with somebody who might get some benefit from this too.

42:50All the best. Your 401k just got caught in the crossfire of the biggest banking rule change since 1971, and most Americans have absolutely no clue it's already happening.